Overview

* Sally Beauty ( SBH ) Q4 revenue increased 1.3% but missed analyst expectations

* Adjusted EPS for Q4 beats consensus, rising 10% yr/yr

* Company completed $20 mln in share repurchases during Q4

Outlook

* Company expects fiscal 2026 net sales of $3.71 bln to $3.77 bln

* Sally Beauty ( SBH ) projects fiscal 2026 adjusted EPS of $2.00 to $2.10

* Company anticipates fiscal 2026 capital expenditures of approximately $100 mln

Result Drivers

* STRATEGIC INITIATIVES - Strong execution of strategic initiatives drove broad-based strength across Sally and BSG segments, leading to 1.3% sales growth

* GROSS MARGIN EXPANSION - Q4 gross margin expanded by 100 basis points to 52.2%, contributing to adjusted EPS growth

* INVESTMENTS AND SHAREHOLDER RETURNS - Cash flow from operations was used to invest for growth, strengthen balance sheet, and return value to shareholders

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Sales Miss $541.56 $932.88

mln mln (4

Analysts

)

Q4 Beat $0.55 $0.47 (5

Adjusted Analysts

EPS )

Q4 Net $49.93

earnings mln

Q4 Gross 61.30%

Margin

Q4 1.30%

Comparab

le Sales

Growth

Q4 $86.18

Operatin mln

g

earnings

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy."

* Wall Street's median 12-month price target for Sally Beauty Holdings Inc ( SBH ) is $15.75, about 6.8% above its November 12 closing price of $14.68

* The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)